Bitcoin Breaches Below $40,000, Market Liquidations Top $250 Million

bitcoin and a chart showing price drop

Bitcoin took a steep dive in the early morning of January 23 (UTC+8), tumbling below the psychologically crucial $40,000 mark. At the time of writing, BTC hovers around $39,560.03, representing a 24-hour plunge of 4.38%. Ethereum mirrored this downtrend, experiencing a 5.67% dip within the same timeframe. Technical indicatirs show that the price will rebound in the next hours or days.

Coin Market in Red On January 23

On the 7-day chart, Bitcoin is down 8%, while Ethereum is down by 9%. The broader market witnessed significant liquidations over the past 24 hours, totaling a staggering $253 million. Notably, long orders, bets on price increases, comprised the bulk of these liquidations, reaching $217 million. The largest single liquidation, a $5 million long order, occurred on the Bybit exchange (BTCUSDH24).

This sharp depreciation, coupled with high liquidation figures, underscores the underlying fragility of the market. Factors like ongoing regulatory uncertainty and potential macroeconomic shifts could be playing a role in this bearish sentiment. Investors are advised to exercise caution and maintain a close watch on market developments.

Technical Analysis

The Relative Strength Index (RSI) of the BTC/USDT chart shows that Bitcoin is very oversold, registering a value of 24. This implies that we are going to see a rebound in the value of the coin in the coming hours or days.

It’s crucial to note that the cryptocurrency market is notoriously volatile, and rapid price swings are not uncommon. While Bitcoin’s fall below $40,000 is undoubtedly significant, it’s important to maintain a long-term perspective and consider it within the context of the broader market trends.

Author: Jinka

Jinka is a self-trained crypto journalist, passionate about happenings in the industry.